Logica Inc. and KPMG Peat Marwick Madrid have announced a strategic partnership market and support Logica's asset-liability software throughout Spain and Portugal.
The firms also announced that 25 financial organizations in Spain have purchased the asset-liability management and financial planning software, called Profit Master Plus.
"With interest rates being so volatile in the last few years, banks and other financial institutions need a system to help manage the risk," said Antonio Paramo, a partner at KPMG Peat Marwick's Madrid office. "Profit Master provides the tool for management to understand and manage interest rate risk to predict profitability."
Mr. Paramo said the partnership provides its customers and both organizations with "a win-win situation."
"KPMG Peat Marwick's banking clients benefit from the distribution and installation of an asset-liability product that we found superior, while Logica gains the benefits of a direct distributor in Europe," he said. "Our initial efforts in Spain have been very successful and we look forward to continuing this momentum with other banking clients in Portugal and South America."
Earlier this year, the Spanish confederation of savings banks, known as CECA, concluded through an independent study that the Profit Master system was one of the most complete and functional available for asset-liability management functions under the Spanish banking regulations.
In North America, the system is marketed under the name Bank Master Plus. It allows bankers to manage balance sheets in an effort to reduce the impact changes in interest rates have on the bottom line. Profit Master Plus allows management to forecast future performance, gain access to interest rate data, calculate markets valuations, and meet regulatory reporting and analysis requirements.
Mr. Paramo said banks that have purchased the system include Banco Santander. Caja Madrid, and Barclays Bank Spain.